U.S. Targets Iran Oil Trade, Warns Shipping on Risks

The United States has introduced a new wave of sanctions targeting Iran’s oil sector, issuing a strong warning to the global shipping industry about the use of poorly regulated vessels within Iran’s shadow fleet.

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced the designation of Shandong Shengxing Chemical, an independent Chinese teapot refinery, for purchasing over $1 billion worth of Iranian crude oil. Several other entities and vessels involved in facilitating Iranian oil shipments to China have also been sanctioned.

“Any refinery, company, or broker that chooses to purchase Iranian oil or facilitate Iran’s oil trade places itself at serious risk,” said Treasury Secretary Scott Bessent. “The United States is committed to disrupting all actors providing support to Iran’s oil supply chain, which the regime uses to support its terrorist proxies and partners.”

This marks the sixth round of sanctions imposed on Iranian oil exports since former President Donald Trump introduced National Security Presidential Memorandum 2 (NSPM-2), part of his broader maximum pressure campaign against Tehran.

Among the newly blacklisted vessels are the Nyantara, Reston, Bestla, Egret, and Rani. OFAC also released an updated advisory aimed at helping the maritime sector identify and prevent sanctions evasion linked to Iranian-origin fuel cargoes. The update includes a focus on Asian insurers known to back shadow fleet vessels.

OFAC cautioned that many tankers involved in these operations are registered under flags of convenience—registries with minimal oversight and compliance standards. The advisory highlighted an uptick in the use of false flags and fraudulent registrations.

“When vessels are registered by jurisdictions known to service shadow fleet vessels or have flown multiple flags in an uncommonly short period of time (e.g., three flag registration changes within a year’s time), maritime stakeholders, including charterers, shipbrokers, insurers and port agents and operators, should request additional documentation on the vessel’s ownership, voyage history, and flag history,” OFAC stated.

The agency recommended stakeholders use tools like the International Maritime Organization’s Global Integrated Shipping Information System (GISIS) to verify vessel flags and identify suspicious registrations.

During Trump’s first term, the U.S. withdrew from the Iran nuclear agreement and reinstated a full embargo on Iranian crude oil exports in 2019. This led to a steep drop in Iranian oil shipments—from 2.5 million barrels per day in early 2018 to just 250,000 by year-end. Under President Biden, enforcement of those sanctions eased, allowing exports to rebound. However, with Trump’s return to office, Washington has swiftly resumed a hardline stance, rolling out a series of sanctions aimed at curbing Iran’s oil trade and its ties to groups like the Houthis in Yemen.